IT-251: Credit for Employment of Persons with Disabilities (2025)
New York · NY DTF · Used for tax years 2025
New York Form IT-251 calculates the Credit for Employment of Persons with Disabilities based on qualified first-year and second-year wages. It also reports shares of the credit received from partnerships, New York S corporations, estates or trusts, and calculates the credit used
Who files this form
Form IT-251 is used to claim the Credit for Employment of Persons with Disabilities. The form provides sections for:
- Individuals who are sole proprietors, partnerships, and estates or trusts calculating the credit.
- Partners, New York S corporation shareholders, and estate or trust beneficiaries receiving a share of the credit from an entity.
The form text does not explain who qualifies as a qualified employee or what wages qualify.
What you'll need
Have the following information ready, as applicable:
- Your name and identifying number as shown on your tax return.
- Each qualified employee’s name and Social Security number.
- The beginning and end dates of each employee’s one-year period for qualified first-year or second-year wages.
- Wages paid during the tax year for services performed during that one-year period.
- The number of qualified full-time employees used in each part of the credit calculation.
- For a credit received from an entity, its name, type, employer identification number, and your share of the credit.
- For an estate or trust allocating the credit, each beneficiary’s name as shown on Form IT-205, Schedule C, identifying number, and share of the credit.
- Last year’s Form IT-251 if you have a carryover credit.
- Tax due before credits and credits applied before this credit.
How to file
Submit Form IT-251 with Form IT-201, IT-203, IT-204, or IT-205, as applicable. The supplied form does not give a mailing address or e-file directions.
- Use Schedule A to calculate the credit on qualified first-year and second-year wages. Use additional Forms IT-251 if necessary.
- If you received a share of the credit from a partnership, New York S corporation, or estate or trust, complete the entity information in Schedule B and report your share in Schedule C.
- Use Schedule D for the beneficiary’s and fiduciary’s shares of the credit.
- Complete Schedule E to total the applicable credit amounts and any carryover from last year.
- Partnerships enter the Schedule E, line 16 amount and code 251 on Form IT-204, line 147. All others complete Schedule F to calculate the credit used this year and the carryover to next year.
Common mistakes
- Listing the same employee in both parts of Schedule A. Part 1 says not to include employees shown in Part 2, and Part 2 says not to include employees shown in Part 1.
- Exceeding the printed wage-entry limit. Column D in both parts of Schedule A shows a $5,000 limit.
- Entering amounts on the wrong lines as a fiduciary. Fiduciaries must not make entries on Schedule E, lines 12 and 13. The fiduciary’s share from Schedule D goes on line 14.
- Leaving out the required return. The form says to submit it with Form IT-201, IT-203, IT-204, or IT-205.
Questions people ask
What if I need more room to list employees?
Use additional Forms IT-251. Enter the additional-form totals on Schedule A, line 2 for qualified first-year wages and line 5 for qualified second-year wages.
Where do I report a credit received from an entity?
Complete Schedule B with the entity’s name, type, and employer identification number. In Schedule C, enter a partnership credit on line 8, a New York S corporation credit on line 9, or an estate or trust credit on line 10.
Where do I enter a credit carried over from last year?
Enter the carryover credit from last year’s Form IT-251 on Schedule E, line 15.
How does the form calculate the credit used this year?
Schedule F, line 20 directs you to enter the smaller of the total credit on line 16 or the net tax on line 19, and refers you to the instructions. Line 21 subtracts line 20 from line 16 to calculate the credit available for carryover to next year.